Misinterpreting Mislabeling: the Psagot Ruling

Mandatory origin labelling of products from occupied territories has been a delicate matter in the EU external trade policy. In the recent judgement Psagot (judgment of 12 November 2019, case C-363/18, Organisation juive européenne and Vignoble Psagot [GC]), the Court of Justice considered consumers’ ethical considerations related to violations of international law as a reason for mandatory origin labelling of products originating in the Israeli settlements. This Insight argues that, in its decision, the Court missed a number of opportunities to clarify some essential concepts of EU food law, consumer protection and customs law and, as such, provided a ruling that is based on flawed and unconvincing argumentation. The Court’s broad interpretation of the notion “ethical considerations” under Regulation 1169/2011 opens a Pandora’s box of trade-restrictive practices while at the same time, continues the EU inconsistent policy towards trade with occupied territories.